40-19c05. Certificate of authority; conditions.
40-19c05
40-19c05. Certificate of authority; conditions.The commissioner of insurance shall issue a certificate of authority tosuch corporation upon compliance with the following conditions: (1) Itshall file with the commissioner of insurance a certified copy of itsarticles of incorporation, bylaws, and the subscription agreement formsand premiums and contracts with participating health care providers andparticipating hospitals it proposes to use all of which shall be approved bythe commissioner of insurance; (2) it shall file with the commissioner ofinsurance contracts with at least 20 participating hospitals having a total ofnot less than 300 beds, and contracts with at least 50 participating healthcare providers; and (3) it shall hold bona fide applications for hospitalservice and medical service upon which it shall have collected a minimum of twomonths' premiums from at least 200 subscribers upon which it shall issuesubscription agreements simultaneously. The total of such premiums shall beheld in cash and shall not be disbursed until the subscription agreements arein force. Any such corporation shall be in possession of lawful assets over andabove all liability in an amount not less than $5,000, and shall file with thecommissioner of insurance a financial statement certified by at least twoexecutive officers.
Before issuing a certificate of authority the commissioner shall cause anexamination to be made of the affairs of the corporation as provided byK.S.A. 40-208, and amendments thereto.
History: L. 1980, ch. 137, § 23; L. 1990, ch. 168, § 3; July 1.